Sustainable Value Creation
Hyundai E&C has declared the “creation of a sustainable habitat for humanity” as its vision of sustainable management, and dedicates its utmost efforts to enhance the happiness of humanity in addition to corporate value.
Sustainability Management Vision & Strategy
Top 4 Goals
Creating a Sustainable Base of Life for Mankind:1>New era of prosperity to be created by Hyundai E&C(HDEC PROSPERITY), 2>New era of green environment to be led by Hyundai E&C(HDEC PLANET),3>New era of co-existence with Hyundai E&C(HDEC PEOPLE)
Eight Propelling Strategies
- 01
Creating sustainable economic value
- Hyundai E&C aims to leap forward as a Total Solution Creator in the construction industry, leading the future-oriented construction sector by diversifying our new business portfolio based on differentiated technological expertise and proven business capabilities, encompassing all areas of the construction industry.
- 02
Future technology and Customer value innovation
- Hyundai E&C is concentrating all of its capabilities on developing unrivaled technologies and promoting technology-driven business in key areas that are in line with the Future Transformation Strategy.
- 03
Response to climate change
- As climate change intensifies, establishing a preemptive climate change response strategy has become a key factor in securing a company's long-term competitiveness. Hyundai E&C has established an enterprise-wide climate change response system in accordance with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).
- 04
Eco-friendly management
- Hyundai E&C is devoting itself to leading the eco-friendly management of the construction industry. We aim to achieve this by establishing an eco-friendly construction process that minimizes environmental pollution throughout the entire value chain. Additionally, we operate a systematic eco-friendly management system based on domestic and international laws and regulations.
- 05
Talent and safety management
- Hyundai E&C aims to prioritize ‘People' as the foremost value and foster innovative talents who create new value with a united spirit among employees. Based on the core value of safety management, we strive to become a safety management leader in the construction industry by firmly establishing a SAFETY VALUE CHAIN that connects workers, partners, customers, and our company.
- 06
Enhancing value chain capability and Creating values
- Hyundai E&C has made efforts to establish a sustainable value chain through communication and cooperation with the goal of ‘Mutual growth through mutually beneficial cooperation.’ Through annual supply chain ESG evaluations, we have established an advanced supply chain management process. In addition, We have performed various activities to fulfill our social responsibilities with a focus on three key areas: a safe environment for future generations to live in, talent development for future generations, and sustainable local communities.
- 07
Sound governance and Ethical & compliance management
- To establish sound governance, Hyundai E&C strives to build trusting relationships with stakeholders by strengthening the independence, expertise, and diversity of the Board of Directors. To this end, we take a leading role in promoting a corporate culture rooted in ethics by reinforcing compliance and ethical management practices across all levels, including Hyundai E&C employees, affiliates, suppliers, and business partners.
- 08
Integrated risk management and Protecting human rights in the value chain
- Hyundai E&C has tried to secure business stability by responding to potential risk factors preemptively through integrated management of financial and non-financial risks. In addition, we are making efforts to minimize negative impacts by preemptively analyzing potential risks throughout the value chains.
Activity · Performance of Corporate Sustainability Management
Hyundai E&C diagnoses its home and abroad sustainable capacity and internal improvement activities by participating in the Dow Jones Sustainability Indices (DJSI) evaluation to practically achieve sustainable growth. As a domestic listed company, we also make public the evaluation result to Korea ESG evaluation agency ESG evaluation agency, Korea Corporate Governance Service (KCGS) to inspect our corporate sustainability management level in Environmental, Social, Governance objectively. We also endeavor to provide our shareholders and stakeholders with objective corporate sustainability management information. To this end, we engage in public disclosure and evaluation where global guidelines and UN Sustainable Development Goals (SDGs) are considered, including Global Reporting Initiative (GRI), recommendation of Task Force on Climate-related Financial Disclosures (TCFD), and standard of Sustainability Accounting Standards. Board (SASB).
Dow Jones Sustainability Indices (DJSI)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| DJSI | World | World (Leader) |
World (Leader) |
World | World |
- DJSI Industry Leader (2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020, 2021)
- DJSI World (14 consecutive years)
- DJSI Asia-Pacific (14 consecutive years)
- DJSI Korea (15 consecutive years)
The DJSI evaluation hosted by S&P Dow Jones Indices, SAM (S&P Global Switzerland SA) in collaboration with Korea Productivity Center (KPC), Hyundai E&C has been nominated as construction industry world leader in 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020 and 2021. We entered DJSI Korea and DJSI World in 2009 and 2010, respectively. Since having entered DJSI Asia-Pacific, we have maintained our position for 14 consecutive years. It means our continuous system improvement and corporate sustainability management activities have been recognized.
Korea Institute of Corporate Governance and Sustainability(KCGS)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Overall grade | A | A | A | A | A |
| Environment | A | A+ | A | A | A |
| Society | A | A | A | A | A+ |
| Governance | B+ | A | A | B+ | A |
Morgan Stanley Capital International(MSCI) ESG Rating
| 2020년 | 2021년 | 2022년 | 2023년 | |
|---|---|---|---|---|
| ESG Rating | B | BB | BBB | BBB |
Institutional shareholder Services(ISS)
| March 2017 | May 2018 | November 2019 | February 2023 | |
|---|---|---|---|---|
| ISS Governance Quality Score | 3 | 3 | 4 | 3 |
| Board Structure | 4 | 4 | 5 | 3 |
| Compensation | 2 | 2 | 2 | 1 |
| Shareholder Rights | 3 | 1 | 1 | 5 |
| Audit | 1 | 5 | 1 | 5 |
Carbon Disclosure Project(CDP)
CDP is the most reliable global sustainability index in the environmental sector, and it evaluates, analyzes, and reports on climate-related activities of global companies every year.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| CDP Rating | A- | A | A- | A- | A |
Award of CRRA
- CRReporting Award'12 - Best integrated report, 1st Runner-up
- CRReporting Award'11 - Best 1st time report, 2nd Runner-up
Corporate Register Reporting Awards (CRRA) is an international award where it solely evaluates corporate responsibility reports issued worldwide at a professional level. The evaluation is conducted fairly via online voting of about 37,000 global voters.
UN Global Compact(UNGC)
United Nations Global Compact (UNGC) is an international agreement made by the former UN secretary-general Kofi Annan in 2000 to urge enterprises to support and execute social responsibility. In April 2010, Hyundai Engineering & Construction joined UNGC for the first time in the domestic industry. Through this, Hyundai Engineering & Construction has been recognized as a socially responsible company in name and reality. Also Hyundai E&C voluntarily participates in the OECD Guideline for Multinational Enterprise and fulfills its responsibilities as a social enterprise.
- HUMAN RIGHTS
- Principle 1 : Businesses should support and respect the protection of internationally proclaimed human rights
Principle 2 : Businesses should make sure that they are not complicit in human rights abuses
- LABOUR STANDARDS
- Principle 3 : Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4 : Businesses should uphold the elimination of all forms of forced and compulsory labour
Principle 5 : Businesses should uphold the effective abolition of child labour
Principle 6 : Businesses should uphold the elimination of discrimination in respect of employment and occupation
- ENVIRONMENT
- Principle 7 : Businesses should support a precautionary approach to environmental challenges
Principle 8 : Businesses should undertake initiatives to promote greater environmental responsibility
Principle 9 : Businesses should encourage the development and diffusion of environmentally friendly technologies
- ANTI-CORRUPTION
- Principle 10 : Businesses should work against corruption in all its forms, including extortion and bribery
Task Force on Climate-related Financials Disclosures(TCFD)
TCFD is a climate-related disclosure published by the Financial Stability Board (FSB) in 2017, and is used in various disclosure standards such as ISSB. In August 2022, Hyundai E&C declared to become TCFD supporters and disclosed our climate-related information in accordance with TCFD standards.
- Governance
- ㆍ The organization’s governance around climate-related risks and opportunities
- Strategy
- ㆍ The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
- Risk Management
- ㆍ The processes used by the organization to identify, assess, and manage climate-related risks
- Metrics
- ㆍThe metrics and targets used to assess and manage relevant climate-related risks and opportunities
Science Based Targets Initiative(SBTi)
SBTi is a voluntary initiative to provide a methodology for establishing science-based greenhouse gas reduction targets in line with the Paris Agreement objectives and to verify corporate reduction targets. Hyundai E&C committed to setting a science-based target in 2022, and became the first one among the domestic listed construction company to obtain approval for its carbon reduction targets in Q3 2023, establishing its credibility and earning recognition for the carbon neutrality roadmap externally.
2022 World Benchmarking Alliance – Nature Benchmark
- 1st in South Korea, 3rd of Construction and Engineering
2023 World Benchmarking Alliance – Building Benchmark
- 3rd of Construction, 14th of all
(Subsectors : Construction, Property Development, Property Management)
2023 KSA(Korean Standards Association)’s KSI(Korean Sustainability Index)
- 1st rank of Construction and Engineering(3 consecutive years)
Sustainability Report
You can see our previous Sustainability reports
on the HDEC Library page.
Implementation of Declaration for Coal Exit (As of Q4 2021)
As of January 22, 2021, Hyundai E&C decided not to participate in new coal business through the resolution of the Board of Directors. Furthermore, we have proactively responded to the climate change crisis and externally disclosed the 'Hyundai E&C Declaration for Coal Exit,' which emphasizes strengthening social responsibility management.
- Summary of Hyundai E&C Declaration for Coal Exit
- - Exclusion of new coal business
- Expanding our portfolio for renewable energy & eco-friendly business
- Eco-business investment & Social Contribution
- Propelling of Environmental Management
- After 2021 Declaration for coal exit: Implementing Climate Change Response Measures
-
- January 2021 Declaration for coal exit(board resolution)
- ↓
- July 2021 Public disclosure of Declaration for coal exit(sustainability report, website)
- ↓
-
October 2022
Declaration for 2045 Net Zero Roadmap(sustainability report, website)
Publication of Net-Zero Report - ↓
-
December 2022
Application for SBTi membership
Transition to a renewable energy portfolio - ↓
- Q3 2023 Approval for SBTi
Portfolio Transition and Expansion
- ㆍReorganization of Renewable Energy Division, establishment of New Energy Business Unit
ㆍExecution of Eco-friendly projects in offshore wind power and Bio-gas
ㆍStart a Power Purchase Agreement business
Eco-Friendly Investments
- ㆍPromotion of greenhouse gas emission reduction through social contributions (H-Green Saving)
ㆍExpansion of environmentally friendly R&D Investments
ㆍEstablishment of ESG Bond Investment Criteria (To be issued in 2025)
Strengthening Environmental Management
- ㆍInduction into CDP Korea Committee's Hall of Fame for 5 consecutive years
ㆍMembership in the TCFD (Task Force on Climate-related Financial Disclosures) Alliance
ㆍEnhanced disclosure of TCFD Information
ㆍFormulation of environmental management policies
